Tuesday, 2 June 2009

Merkel attacks quantitative easing

At last, a European politician has stood up and denounced the collective madness that has gripped the developed world's central banks.

Speaking in a conference in Berlin, Angela Merkel, the German Chancellor, attacked the reckless money creation of the Fed and the Bank of England.

This is how she outlined the problem:

"What other central banks have been doing must stop now. I am very sceptical about the extent of the Fed’s actions and the way the Bank of England has carved its own little line in Europe.

Even the European Central Bank has somewhat bowed to international pressure with its purchase of covered bonds. We must return to independent and sensible monetary policies, otherwise we will be back to where we are now in 10 years’ time.”